China Property Bubble To Rubble Part 2

China Vanke Sells $800 Million of Dollar Bonds at T+195 Bps

March 8 (Bloomberg) — According to data compiled by
• Issuer: Bestgain Real Estate Ltd.
• Tenor: 5-yr
• Issue Spread: T+195 bps
• Coupon : 2.65%
• Maturity Date : 13 Mar 2018
• Format: Reg S
• Rating : BBB-

It is trading 10 bp tighter now which works out to be about 0.5 cts on the bond price which is 100.50. (sorry been corrected here. issued at 99.39 and traded to high of 99.85).

America fell because of housing, but China is rising too fast because of it.

Just bring it to America !

China’s Housing Bubble Goes Mainstream America

Leading to comments like these,

ZELMAN: This Is Housing Nirvana, I’m The Most Bullish On Housing I’ve Ever Been

As the ghost towns build up, China’s largest homebuilder, Wang Shi says it would be a “disaster” if the bubble burst.

BUSINESS INSIDER : Scary New Satellite Pictures Of China’s Ghost Cities

They are doing the right thing now. Dump onto the masses then buy America, London, Singapore, Australia and of course, EUROPE. WSJ : CHINA GROUP IN TALKS TO BUY HISTORIC GM BUILDING STAKE No mainstream paper will dare to report on the negative now.

Washington Post : BBC blocked in China just days after reporting on Chinese hackers

But when a standard Shanghai apartment is over 45X income, 2 things have to happen. 1. Income to rise (property prices constant) or, 2. Prices to fall.

Governments are making attempts to do both right now, like in Singapore.

Strong rumours going around on another round of cooling measures coming into the Singapore property market, affecting mortgage servicing ratio. The expectation is for mortgage servicing ratio to be cut to 30% of the maximum base on monthly income.

Wouldn’t that drive buyers to Iskandar and London and wherever else ?

A friend advised that it may apply to offshore investment properties too, if the loan is taken in Singapore.